LDK to Offer $300 Million in Debt

The Chinese solar-power company will issue senior notes due 2013, which can be converted into cash, American depositary shares or a combination of both.

The interest rate, conversion price and other terms have not been determined.

LDK said it will use $150 million in proceeds for stock repurchases. It expects to put 75 percent of remaining funds toward construction of its polysilicon plant; 20 percent toward capacity expansion of its wafer production facilities; and 5 percent for other general purposes.

LDK shares dropped $1.06, or 3.3 percent, to $31.45 in premarket electronic trading.